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🤝Negotiations

1.3 Types of Negotiations

2 min readLast Updated on July 23, 2024

Negotiations come in different flavors. Distributive negotiations are like splitting a pie, where one person's gain is another's loss. Integrative negotiations aim to make the pie bigger, finding ways for everyone to win.

Knowing when to use each type is key. Distributive works for fixed resources and short-term deals. Integrative shines in long-term relationships with multiple issues. Win-win approaches build trust and satisfaction, while multi-party talks require special strategies to manage complexity.

Types of Negotiations

Distributive vs integrative negotiations

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  • Distributive negotiations involve parties competing for a fixed amount of resources or value (zero-sum game) where one party's gain is the other party's loss, focusing on claiming value rather than creating value
  • Integrative negotiations involve parties collaborating to create value and find mutually beneficial solutions (non-zero-sum game), aiming to expand the pie and satisfy both parties' interests by focusing on creating value rather than claiming it

Appropriateness of negotiation types

  • Distributive negotiations are most appropriate when resources are fixed and limited, parties have opposing interests or priorities (budget allocation), and the relationship between parties is short-term or one-time (haggling over price at a market)
  • Integrative negotiations are most appropriate when parties have multiple issues or interests to discuss, potential exists for creating value or finding mutually beneficial solutions (business partnerships), and the relationship between parties is long-term or ongoing (labor-management agreements)

Win-win negotiations and benefits

  • Win-win negotiations aim to find mutually beneficial solutions that satisfy both parties' interests by collaborating to create value and expand the range of possible outcomes
  • Benefits of win-win negotiations include:
    • Improved relationships and trust between parties leading to greater cooperation
    • Increased likelihood of agreement and implementation due to mutual satisfaction
    • Greater satisfaction with outcomes and process resulting in positive feelings
    • Potential for long-term cooperation and future opportunities based on successful negotiation

Multi-party negotiation challenges

  • Challenges in multi-party negotiations include:
    • Increased complexity and potential for conflicting interests among multiple stakeholders
    • Difficulty in managing communication and information sharing across many parties
    • Formation of coalitions and power dynamics among parties influencing outcomes
    • Longer time required to reach consensus or agreement due to multiple perspectives
  • Strategies for multi-party negotiations include:
    1. Identify and prioritize key stakeholders and their interests to focus efforts
    2. Establish clear ground rules and communication protocols to facilitate productive discussions
    3. Use facilitation or mediation to manage the process and discussions impartially
    4. Encourage collaboration and joint problem-solving among parties to find creative solutions
    5. Build coalitions and alliances to create leverage and influence outcomes in your favor


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AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.